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Retirement Eligibility

Normal retirement age is 65. Payment from the fund is available to those who retire as early as age 55. However, should a employee retire prior to age 65, the pension wage paid is reduced by 6 percent per year for each year under age 65. Postponed retirement is also contemplated. A pension must be drawn, however, by the end of the year in which you turn age 71.

HOW RETIREMENT BENEFITS ARE PAID

(i) Past Service Credit

One of the major advantages of the Plan is the past service credit. Normally when a pension plans first start up no credit is given for service prior to the effective date of the pension plan.

Past service depends on the number of full years of service you have with the employer prior to the date the employer joins the Plan . The amount of past service pension is $26.60 per month based on a total contribution rate of 8 percent for each full year of past service, up to a maximum of 7 years.

Four years of past service is granted on you becoming a vested (2 years of plan participation) member of the Plan. You will earn one additional year of past service credit for each 1800 hours of contribution of future service, up to 3 years for a total maximum of 7 years.

(ii) Future Service Credit

The pension wage is paid on the basis of career average contributions.

Contributions made by you on your behalf on or after the date the bargaining unit joins the Plan will generate a monthly retirement income based on $1.55 for every $100 of contributions.

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